Canada Markets

Last week in DTN's 360 Poll, we asked what do you think of the Canada Pension Plan Investment Board purchase of 115,000 acres of Saskatchewan farmland from Assiniboia Farmland LP? Results of this unscientific poll were as follows:

-- 5% said it's a good move, because farmland is a safe and stable investment over time

-- 10% responded that they were glad to see the land remain Canadian owned

-- 52% said they were against the sale and would rather not compete against investment funds in the land market

-- 14% suggested the sale was bad and could lead to further speculation activity as small investors position themselves for sale to large investors just as seen in the Assiniboia land sale

-- 19% answered that they were indifferent, as outside investment in farmland seems inevitable.

One respondent left a comment suggesting the sale to CPP was viewed as being bad by many as there are ethical issues to many over the use of government tax dollars for the purchase of farmland.

Further on the subject of Canadian farmland, the Brandon University has announced a four-year study of the loss of farmland due to urban growth, along with the impact to the ag economy. The Brandon University website states, "In the last 40 years, farmland approximately twice the size of Prince Edward Island has been taken over for urban activities." The goal is to "understand how this transfer affects our ability to be a food-producing nation and contribute to the conversation about policies for the future."

This debate rages on at my home near Calgary. Mayor Naheed Nenshi of Calgary would like to see growth take place up and not out, while also advocating for the end of the "sprawl subsidy" of $4,800 per household, costs that are currently not extracted from developers but instead bourne by city tax-payers to drive expansion into the suburbs. Studies by think tanks have shown that this subsidy is even higher than calculated by the city. The developers argue that home affordability becomes jeopardized by off-loading further costs to the developer/buyer, while current studies indicate the city will grow by 120,000 people in the next five years with 94% of this growth to take place in the suburbs, while gobbling more and more land.

A complex debate to say the least.

We at DTN would like to wish you and your families a very Merry Christmas. May your travels be safe and your holiday season be filled with the warmth of friends and family.

Cliff Jamieson can be reached at cliff.jamieson@dtn.com

(ES)

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